This is the third in a series to help homeowners facing default. Many homeowners don’t realize that there are options available to them other than losing their home to their lender through foreclosure. If you have missed the previous posts, please go back and check them out.
HOW MUCH TIME DO I HAVE?
If you are like most people, the first question on your mind once you know you have missed your first mortgage payment is “How soon until the sheriff comes to kick us out of our home?” Well, let me reassure you that it won’t be any time soon.
Every state is different but in Indiana we are what is termed a “judicial foreclosure” state. This means that the lender has to go to court and get a judgment that allows them to take back the property. You can see from the timeline above that the mortgage is considered in default when the borrower is 16 days past due on their payment. Usually at this point the lender will call you requesting that you make a payment if you plan to stay in the home. If the lender hasn’t called, give them a call, explain your situation and talk to them about your options.
The timeline lays out the time frame of the process from the first missed payment to the Sheriff’s Sale. One thing to keep in mind is that the time frame is the earliest date at which these things can occur. They can occur much later. But don’t use that as your plan. We’ve all heard of people being in their home for one, two, even three years before the sheriff kicks them out but don’t plan on that. Talk to your lender, talk to a CDPE agent and talk to a real estate attorney to find out your options.
You do have options available to you!
Next: Why Not Just Walk Away?
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